Tag: japan

Japan warned the G-20 major economies against focusing narrowly on the trade balance in addressing global imbalances, with its top currency diplomat on Tuesday calling on them to settle trade disputes through a multilateral framework. The Group of 20 members must instead explore policy options to fix persistent global imbalances in a multilateral setting, he said. Rather than focusing too much on bilateral trade imbalances, there should be more attention to capital flows and structural factors t

Japan warned the G-20 major economies against focusing narrowly on the trade balance in addressing global imbalances, with its top currency diplomat on Tuesday calling on them to settle trade disputes through a multilateral framework.

Masatsugu Asakawa, Japan’s vice finance minister for international affairs, said slapping tariffs against each other would do little to fix the imbalance between nations with large current account surpluses and those with deficits.

The Group of 20 members must instead explore policy options to fix persistent global imbalances in a multilateral setting, he said.

“We should recognise there is large room for cooperation between surplus and deficit countries,” Asakawa told an International Monetary Fund seminar.

“Current account is not just about the trade balance” and imposing tariffs “do not have a material impact on the current account balance,” he added.

Rather than focusing too much on bilateral trade imbalances, there should be more attention to capital flows and structural factors that affect current account balances, Asakawa said.

Japan will make tackling global imbalances a priority in deliberations as next year’s G-20 chair, as the topic “fits extremely well with the core mandate of G20,” he said.

The G-20 has failed to bridge differences on trade as U.S. President Donald Trump caused frictions with other nations by slapping tariffs to try to narrow the huge U.S. trade deficit.

Tuesday’s remarks reflect Tokyo’s hopes that others would join Japan in countering Trump’s focus on getting U.S. trade deficits to narrow through bilateral trade deals, rather than on multilateral agreements now in place.

Among ways the G-20 nations could fix external imbalances is for emerging countries to use the huge savings accumulated in advanced economies for investment, Asakawa said.

Advanced countries can benefit from investing in emerging economies by getting higher returns on their savings, which would give their ageing populations more money to prepare for retirement, he said.

Asakawa also said the impact a weak yen has in boosting Japan’s export volume has diminished in recent years as companies shift production overseas, and no longer use much the competitive advantage of a weak currency to slash the price of goods they sell abroad.

“It’s a very good thing for Japan’s economy,” he said. “It might mean that the export structure of Japan has shifted to (producing) high-value goods that sell at higher prices.”

Markets, however, would be unlikely to greet with enthusiasm such a repeat performance. That is quite obvious from a gross public debt of $22 trillion (107 percent of GDP), and counting, and a public sector budget deficit currently estimated at about 6 percent of GDP. How, under those circumstances, can anybody expect that the financial markets could digest such a huge public sector borrowing requirement without causing considerable damage to asset prices? Goods trade alone is considerably worse

Of course, in case of need, the Fed, as a lender of last resort, can always relapse into mindless quantitative easing routines — but that would again be a desperate measure of a seemingly never-ending crisis management. Markets, however, would be unlikely to greet with enthusiasm such a repeat performance.

The fiscal policy lever is even more impaired. That is quite obvious from a gross public debt of $22 trillion (107 percent of GDP), and counting, and a public sector budget deficit currently estimated at about 6 percent of GDP.

The latest data, released last Thursday, are pointing to a worsening trend of public finances. In the course of November, federal spending shot up 18 percent from the year earlier while revenues fell 1 percent — in spite of relatively strong economic activity. For the first two months of the present fiscal year, the federal budget deficit soared 51 percent from the same period of 2017, and was running at a mind-boggling annual rate of $1.8 trillion.

How, under those circumstances, can anybody expect that the financial markets could digest such a huge public sector borrowing requirement without causing considerable damage to asset prices?

There are no easy solutions to that predicament, but a rapidly improving U.S. trade balance could go a long way toward preventing a major economic slowdown and providing some support to stretched market valuations.

Here are a few numbers to show where the U.S. stands on that now.

This year, the deficit on American foreign trade in goods and services is expected to take out of the economy more than $550 billion, or 2.7 percent of GDP.

Goods trade alone is considerably worse. In the first 10 months of this year, the U.S. ran a $623 billion trade deficit with China, Europe and Japan. That amount represents 84 percent of the total gap on American international goods transactions.

Japan’s government formally passed legislation over the weekend to allow more foreign workers in a move aimed at alleviating severe labor shortages that are a major drag on the Japanese economy. From April next year, the world’s third-largest economy will allow unskilled foreigners to work in 14 sectors such as construction and elderly care for up to five years. Skilled foreigners, meanwhile, will be able to migrate with their families and remain in Japan indefinitely. Currently, unskilled worke

Japan’s government formally passed legislation over the weekend to allow more foreign workers in a move aimed at alleviating severe labor shortages that are a major drag on the Japanese economy.

That may not be enough to mitigate the nation’s dwindling workforce.

From April next year, the world’s third-largest economy will allow unskilled foreigners to work in 14 sectors such as construction and elderly care for up to five years. Skilled foreigners, meanwhile, will be able to migrate with their families and remain in Japan indefinitely. Prime Minister Shinzo Abe’s cabinet first approved the laws last month.

Currently, unskilled workers are only accepted under an intern training program. Foreigners with specialized knowledge who don’t apply for permanent residency can only live in the country for a limited time without family members.

Five U.S. Marines were missing after two Marine Corps aircraft collided in mid-air and crashed into the sea off the coast of Japan on Thursday, in what U.S. officials said may have been a refueling exercise gone wrong. A series of emergency landings and parts falling from U.S. military aircraft have highlighted safety concerns. The Marine Corps said in a statement the incident occurred around 2 a.m. local time in Japan (1700 GMT Wednesday) about 200 miles off the Japanese coast. The two aircraft

Five U.S. Marines were missing after two Marine Corps aircraft collided in mid-air and crashed into the sea off the coast of Japan on Thursday, in what U.S. officials said may have been a refueling exercise gone wrong.

Japan’s defense ministry said its maritime forces had so far found two of the seven Marines who were aboard the aircraft — an F/A-18 Hornet fighter jet and KC-130 Hercules — at the time of the incident.

One was in a stable condition at Marine Corps Air Station Iwakuni, while the second had been found about 10 hours after the collision and brought aboard a Japanese military vessel, the ministry said. No other details about the second Marine were known, a ministry spokesman said.

Search and rescue efforts for the remaining five continued.

The incident adds to a growing list of U.S. military aviation accidents around the world in recent years, prompting hearings in Congress to address the rise.

The Military Times reported earlier this year that aviation accidents jumped nearly 40 percent from fiscal years 2013 to 2017. At least 133 service members were killed in those incidents, it said.

U.S. military accidents are a sensitive topic in Japan, particularly for residents of the southern prefecture of Okinawa, which is home to the bulk of the U.S. presence in the country. A series of emergency landings and parts falling from U.S. military aircraft have highlighted safety concerns.

“The incident is regrettable, but our focus at the moment is on search and rescue,” Japanese Defense Minister Takeshi Iwaya told a news conference. “Japan will respond appropriately once the details of the incident are uncovered.”

The Marine Corps said in a statement the incident occurred around 2 a.m. local time in Japan (1700 GMT Wednesday) about 200 miles off the Japanese coast.

The two aircraft had launched from Marine Corps Air Station Iwakuni and were conducting regular training when there was a “mishap,” the Marine Corps said.

The Marine Corps did not elaborate on the nature of the incident. A U.S. official, speaking on condition of anonymity, said it occurred during a refueling exercise.

Officials who spoke to Reuters on condition of anonymity were unsure precisely how the mishap occurred but none suspected foul play. An investigation has begun.

Wakatabe, a vocal advocate of aggressive monetary easing, said it was important to maintain the BOJ’s massive stimulus program to ensure the economy remains strong enough to nudge up prices and wages. “Doing so would enhance the sustainability of our policy and heighten the chance of achieving 2 percent inflation.” As an academic, Wakatabe had repeatedly called for stronger steps to drive up inflation. If downward pressure is exerted on the economy again, it may revert to deflation,” Wakatabe sa

Bank of Japan Deputy Governor Masazumi Wakatabe said on Wednesday the country could slide back into deflation if the economy comes under downward pressure again, highlighting risks such as the fallout from U.S.-China trade frictions.

Wakatabe, a vocal advocate of aggressive monetary easing, said it was important to maintain the BOJ’s massive stimulus program to ensure the economy remains strong enough to nudge up prices and wages.

But he noted the central bank would be vigilant to the side-effects of prolonged easing, as its huge purchases dry up bond market liquidity and near-zero interest rates hurt financial institutions’ profits.

“It’s necessary to continuously examine not only the effects of our policy on inflation, but also the impact on financial markets and the banking system,” Wakatabe said in a speech to business leaders in Niigata, northern Japan.

“Doing so would enhance the sustainability of our policy and heighten the chance of achieving 2 percent inflation.”

As an academic, Wakatabe had repeatedly called for stronger steps to drive up inflation. But he has toned down his demands for more stimulus since joining the BOJ board in March.

The central bank is now at a crossroads because it has been pursuing radical quantitative easing for more than five years with only mixed results.

Wakatabe said while Japan’s economic expansion would continue, it faced various risks such as the effects of next year’s scheduled tax hike to 10 percent from 8 percent and the U.S.-China trade dispute.

“Japan is only half way to achieving 2 percent inflation. If downward pressure is exerted on the economy again, it may revert to deflation,” Wakatabe said.

“The BOJ will seek to accelerate inflation to levels deemed appropriate for the economy by continuing large-scale monetary easing,” he said.

The Rugby Union World Cup is billed as the world’s third-largest global sporting event, behind the Olympics and soccer World Cup, due to its participating nations, ticket sales and television audience. “We’ve had some independent studies done and they predict that in British pounds there will be about £2.79 billion ($3.5 billion) of increased economic activity around the Rugby World Cup.” Rugby World Cup Organizing Committee CEO Akira Shimazu exclusively told CNBC ahead of Japan’s November inter

Japan will be the first Asian country to host the Rugby Union World Cup in 2019 and its organizing committee has promised the tournament will be a uniquely Japanese event.

With the Olympics and Paralympics to come in 2020, officials feel the country is entering its “golden sporting years.”

The Rugby Union World Cup is billed as the world’s third-largest global sporting event, behind the Olympics and soccer World Cup, due to its participating nations, ticket sales and television audience.

Historically it has been hosted in traditional rugby hotspots, not least the 2015 version in England and in New Zealand four years earlier. Twelve stadiums across Japan will host the 43-day tournament beginning on September 20, 2019, and a tourism boom is being predicted by organizers, with 70 percent of the 2.5 million ticket requests received so far coming from outside of Japan.

“We’ve had some independent studies done and they predict that in British pounds there will be about £2.79 billion ($3.5 billion) of increased economic activity around the Rugby World Cup.” Rugby World Cup Organizing Committee CEO Akira Shimazu exclusively told CNBC ahead of Japan’s November international against England.

By contrast, 2018’s soccer World Cup in Russia was predicted to have almost ten times that amount of economic impact on the host country.

“There is a short space of time between the events of the Rugby World Cup and then the Olympic and Paralympic Games, but in some ways that can be beneficial,” Shimazu said.

Rugby Union has gained in popularity over the past decade in Japan with over 120,000 registered players in the country. Technology is expected to play a key role in this World Cup, including state-of-the-art facial recognition technology to be used as added security at matches, which will also feature at the Olympics and Paralympics in 2020.

“There are many merits of having those two events so close to each other,” Shimazu said. “France will have the same issues with the next Rugby World Cup and then the Olympics in Paris, so we’re setting the bar very high for them, so they can carry on and follow our lead.”

Japan to be first Asian country to host Rugby World Cup in 20198:50 AM ET Mon, 3 Dec 2018CNBC’s Adam Reed spoke with Akira Shimazu, CEO of the Rugby World Cup Organizing Committee, about the upcoming tournament in Japan.

With the carmaking alliance facing its biggest test after the ousting of Ghosn as chairman of Nissan and affiliate Mitsubishi over financial misconduct allegations, President Emmanuel Macron sat down with Prime Minister Shinzo Abe at the G-20 summit in Buenos Aires. Ghosn’s arrest to face accusations including the under-reporting of income has triggered new attempts by Nissan to weaken Renault’s control of the Franco-Japanese alliance, adding to challenges facing Macron at home. Abe said it was

France and Japan’s leaders met for bilateral talks to avert a diplomatic row over the Renault-Nissan-Mitsubishi alliance on Friday following the surprise arrest of its Chairman Carlos Ghosn in Japan.

With the carmaking alliance facing its biggest test after the ousting of Ghosn as chairman of Nissan and affiliate Mitsubishi over financial misconduct allegations, President Emmanuel Macron sat down with Prime Minister Shinzo Abe at the G-20 summit in Buenos Aires.

Ghosn’s arrest to face accusations including the under-reporting of income has triggered new attempts by Nissan to weaken Renault’s control of the Franco-Japanese alliance, adding to challenges facing Macron at home.

Macron, whose government has repeatedly pressed Japan to share evidence unearthed by Nissan’s internal investigation into Ghosn, “restated his firm wish that the alliance should be preserved, along with the stability of the group,” an Elysee official said after Friday’s meeting with Abe.

Abe said it was important to “maintain a stable relationship,” according to a spokesman for the Japanese leader.

“However, he said the future of the alliance is up to the private-sector shareholders. The government of Japan does not prejudge the future of the alliance,” the spokesman said.

The French official quoted Abe as telling Macron that “the legal process must be allowed to take its course.”

British mobile bank Revolut has obtained licenses to operate in Japan and Singapore as it readies an expansion into Asia. The London-based financial technology firm said Thursday that it had acquired a remittance license from the Monetary Authority of Singapore and full authorization from Japan’s Financial Services Agency. It said Thursday that it intends to launch its platform in the Asia-Pacific (APAC) region in the first quarter of 2019, and is looking to select Singapore to host its APAC hea

British mobile bank Revolut has obtained licenses to operate in Japan and Singapore as it readies an expansion into Asia.

The London-based financial technology firm said Thursday that it had acquired a remittance license from the Monetary Authority of Singapore and full authorization from Japan’s Financial Services Agency.

Revolut offers users a prepaid debit card and a current account, as well as premium features like cryptocurrency trading and free unlimited foreign exchange.

It said Thursday that it intends to launch its platform in the Asia-Pacific (APAC) region in the first quarter of 2019, and is looking to select Singapore to host its APAC headquarters.

Revolut also has plans to eventually release its app in the U.S., Canada, Australia and New Zealand.

“We have confidence that Revolut will continue to be a driving force as we expand globally, developing a range of exciting new services for increasingly connected consumers in APAC,” Revolut Chief Executive Nikolay Storonsky said in a statement Thursday.

“It’s a huge market and we’re already seeing an incredible amount of people demanding our product.”

More than 50,000 people in the APAC region have signed up to a waiting list to create an account with Revolut, the firm said.

Revolut added that it is working with Singapore’s central bank to advise on legislation being tabled in the country’s parliament and aimed at streamlining payments regulation under one single piece of legislation.

It has also partnered with Japanese e-commerce company Rakuten, property insurer Sompo Japan Insurance and printing firm Toppan.

Apple is planning to help its wireless carrier partners subsidize the costs of cutting the iPhone XR price in Japan, according to The Wall Street Journal. It’s the latest signal the iPhone XR isn’t selling as well as expected. Also, well-known Apple analyst Ming-Chi Kuo, who was at first very bullish about the iPhone XR, issued a note earlier in the month that cut his iPhone XR shipment estimates by 30 million units. The iPhone XR is the more affordable of the three iPhones Apple launched this y

Apple is planning to help its wireless carrier partners subsidize the costs of cutting the iPhone XR price in Japan, according to The Wall Street Journal.

It’s the latest signal the iPhone XR isn’t selling as well as expected.

Earlier this month, Nikkei reported that Apple had asked suppliers to cancel plans to boost production of the iPhone XR, which also suggested demand for the device was not as high as anticipated. Also, well-known Apple analyst Ming-Chi Kuo, who was at first very bullish about the iPhone XR, issued a note earlier in the month that cut his iPhone XR shipment estimates by 30 million units.

The iPhone XR is the more affordable of the three iPhones Apple launched this year. Apple included many of the features available in its high-end iPhone XS and iPhone XS Max flagship phones, including support for Face ID and a large display, but the Journal said customers in Japan still prefer last year’s even more affordable iPhone 8.

It’s common to see discounted phones leading into the holiday season, however.

Many manufacturers, including Samsung and Google, also discount phones, and carriers have regularly offered bargains to customers in the U.S. to help drive sales. Apple’s holiday quarter is usually dominated by iPhone sales. Apple sold 77.3 million iPhones during the holiday quarter last year, for example. But Apple said earlier this month it will no longer break out its individual unit sales for iPhone.